65 as Retirement Age: Employees Demand Becomes Electoral Manifesto Issue

Once again, raising the retirement age has started making headlines. But this time, they are not rumours or false stories. There is some truth in it. A recognized political party has promised to increase the retirement age of state government employees from 60 to 65.

‘Samajwadi Party’
In the election manifesto released yesterday, the party has promised to raise the retirement age of the state employees to 65.

Not 62, but 65..!

Retirement age for state government employees differ from state to state. Since the state governments do not follow the Central Government’s retirement age at 60, the demand has now started to show up in election manifestos of different states.

State governments have the power to decide the retirement ages of its employees. The recent Budget happenings of the Kerala State Government in this issue are well known.

Last year, there were a number of developments in this issue for the employees of Uttar Pradesh State Government. Since employees getting job at the age of 40 and retiring at 60 will not be able to complete qualifying service hence, will be devoid of benefits such as gratuity. Therefore, a demand was put forth to increase the retirement age..!

While replying to this question, Minister Mohd Azam Khan said that the State Government had no plans to raise the retirement age. He also accepted that the maximum age for recruitment for State Government employment has been changed to 40. He said that there were currently no plans of increasing retirement age because it would adversely affect the employment opportunities of others.

Amidst these situation, it is worth noting that the Samajwadi party, in its election manifesto, has announced that it would increase the retirement age to 65.

Source: 90paisa.blogspot.in
[http://90paisa.blogspot.in/2014/04/retirement-age-of-65-politicization-of.html]

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General elections’ dates may be notified on March 5

The Congress-led United Progressive Alliance (UPA) is likely to take a major decision of increasing the retirement age of Central government employees by two years, from 60 to 62 this week. This would be applicable from March 1.

It would be one of the major decisions to be taken by the Cabinet before the model code of conduct for the general elections kicks in. In the Thursday meeting, the Cabinet is also likely to recommend dates for the elections. These could be notified on March 5.

“The government may clear the increase in age this week,” said a source. It is likely to be a part of the terms of reference of the Seventh Pay Commission, expected to file its report in 2017. The panel, however, can recommend an interim relief through the move.

The increase in retirement age would be happening after 15 years. In 1998, it was increased to 60 from 58 following implementation of the Fifth Pay Commission. Experts said it would defer payment of retirement benefits. However, sources confirmed this would not be applicable for employees retiring on February 28.

The cabinet is expected to discuss a proposal to increase the dearness allowance by 10 per cent from January 1, to make it 100 per cent and merge 50 per cent of the increased dearness allowance with basic pay. The terms and conditions of the panel include a proposal to merge 50 per cent of dearness allowance with basic pay.

The move to increase the retirement age may pressure the states to follow. The department of personnel and training was working on the proposal for quite some time. The Budget estimate on the pension outgo for 2014-15 is Rs 80,982 crore, 0.6 per cent of the gross domestic product.

Source: http://www.business-standard.com
[http://www.business-standard.com/article/economy-policy/centre-may-raise-age-of-retirement-by-2-years-to-62-114022600007_1.html]

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As per media news, Union cabinet is going to meet on Thursday or Friday(27th or 28th Feb. 2014) and the Cabinet is expected to clear two main agenda points in the meeting as follows…

One is Retirement Age 62: Retirement age of Central Government employees will increase by two years from 60 to 62 with effect from 1.3.2014.

Additional 10% DA from 1.1.2014 : 10% of Additional Dearness allowance from 1.1.2014 to all Central Government employees and pensioners, may be declared in the meeting.

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We have heard it so many times . Every one of us got tired of hearing this rumour again and again. But this time this news may not fade away just as a rumour.

Because the series of events that had happened until now listed below are telling that it will be come true soon.

1. Though there is no any demand from any corner to raise the retirement age of central government employees to 62 years, a parliamentary panel has recommended a proposal to increase the retirement age of government servants to 65 years. The report of the standing committee of Parliament on social justice and empowerment tabled in the Parliament on 7th of this month. Ample justification also was given for their recommendation to increase the retirement age.

2. A reliable source close to a Cabinet Minister told that, the Cabinet Minister himself, while addressing to the Trade Union Wing of his party told ‘the Central Government would announce some important decisions in respect of central government employees within a week or two. This will be good news for all the central government employees.’

3. A close ally of a Central Minister told that, in a meeting held with the leaders of the state unit of his party day before yesterday, the Minister told the Leaders ‘a proposal of increasing retirement age of central government employees to 62 years has been waiting for Cabinet nod. It is expected that the cabinet will clear this proposal within a week. After it gets the Cabinet Nod, the formal announcement will be made by Central Government before the Election announcement.’

The above information clearly indicates that some Good News for Central Government Employees are waiting to be announced within a week or two. All the central government employees know what that good news is!

The expected good news will be either increasing retirement age or Merging 50% DA with Basic Pay or Both!

Source: www.gservants.com
[http://www.gservants.com/2014/02/17/proposal-raising-retirement-age-62-waits-cabinet-nod/]

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Siddharth Zarabi
The national capital, home to a vast majority of central government employees, is headed for elections this November. And so are four other states, followed by the general elections sometime early next year. This, more than anything else, explains the central government’s hurry to promise its employees higher wages.

The award of the seventh pay commission will be implemented from the beginning of 2016 and will benefit nearly 3 million pensioners. But since state governments generally match central wages, the actual beneficiary list stands at over 11 million employees and pensioners. The fact that this award is one more in a long list of expenditure-heavy pre-election programmes, will mean several consequences for India’s finances. Back of envelope calculations suggest that even if the increments in the 6th pay commission were to be matched, the centre’s wage bill could rise by up to Rs 1 lakh crore in 2016. But on the other hand, this payout will spark a surge in consumption starting that year. Why? The sixth pay commission award amounted to around 0.5 percent of GDP and a tidy sum was handed out as arrears in the start of 2008. That extra spending power meant that the ensuing slowdown was mitigated to some extent. This could play out again in 2016. Meanwhile, CNBC TV18 learns that the proposal to extend the retirement age of central government employees by two years has received fresh impetus. A decision on this could be taken within a week or two, and would be the second major populist decision by the UPA to woo the urban middle class and the powerful government employee mass in Indian society.

Source: www.moneycontrol.com
[http://www.moneycontrol.com/news/business/7th-pay-panel-formed-retirement-age-may-go62-yrs_956487.html?utm_source=ref_article]

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“There is no such plan to raise the retirement age to 62 from 60 years,” a reliable source in the government said. There are about 50 lakh central government employees working in various departments including the Railways across the country.

Source: PTI
[http://www.ptinews.com/news/3899879_Govt-not-considering-to-raise-retirement-age-to-62-]

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